Gold prices jumped one-and-a-half dirham per gram in UAE on Monday evening as bets built for the first US rate cut of the year in June.
According to Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh253.5 per gram on Monday evening as compared to Dh252.0 per gram at the opening of the markets today. Among the other variants of the precious metal, 22K was trading higher at Dh234.5, 21K at Dh227.0 and 18K at Dh194.75 per gram.
Spot gold jumped 0.58 per cent lower to $2,095.57 per ounce as of 6.25 pm UAE time.
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Vijay Valecha, chief investment officer at Century Financial, said precious metal prices have seen a steady uptick for the fourth consecutive day.
“The US dollar is encountering difficulties in gaining significant ground amid growing speculation about a forthcoming change in the Federal Reserve’s policy stance. This, coupled with a subdued sentiment in equity markets, supports the safe-haven appeal of gold. However, an uptick in US Treasury bond yields is tempering further advances.
Market participants appear hesitant to adopt overly bullish positions on gold, opting to await further signals. This cautious stance may act as a restraint on gold’s upward momentum, particularly with Fed Chair Jerome Powell’s semi-annual congressional testimony scheduled for Wednesday and Thursday looming ahead,” he said.